Alpha Financial Markets Consulting (AFM) investor relations material

Executive summary

• Net fee income grew 2.8% to £233.6m, mainly organically, with all regions achieving growth on a constant currency basis despite a more competitive consulting market and longer sales cycles.

• Adjusted EBITDA fell 9.5% to £42.2m, margin at 18.0% (down from 20.5%), reflecting lower consultant utilisation and selective investment.

• Selective hiring in key growth areas, with 15 new directors added, and successful launch of insurance consulting in North America.

• Completed bolt-on acquisition of Shoreline, consolidating APAC presence, adding 36 new client relationships, and modifying earn-out terms.

• Announced a recommended cash offer from Bridgepoint-managed Bidco for 505p per share to acquire Alpha.

Financial highlights

• Revenue grew 3.0% to £235.5m; net fee income up 2.8% to £233.6m.

• Gross profit declined 2.6% to £78.3m, margin 33.5% (down from 35.4%).

• Adjusted EPS fell 14.9% to 24.90p; total dividend per share was 3.70p (FY 23: 14.20p).

• Net cash at year-end was £29.4m, with a fully undrawn £50.0m revolving credit facility.

• Adjusted cash generated from operations was £23.6m, impacted by higher prior-year bonus payments.

Outlook and guidance

• Entering FY25 with a strong pipeline, improved sales wins, and consultant utilisation near target, though further improvement is needed in some areas.

• Long-term growth ambition to double the business by 2028, underpinned by structural drivers such as regulation, cost pressures, ESG, and technology.

• No final dividend recommended due to pending acquisition; if not completed, a dividend may be declared later.

• Strong balance sheet and ongoing acquisition opportunities support future growth.